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Average Home Values and Ownership in Zip Code 17040: A Decade of Growth in Rural Pennsylvania
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Landisburg, located in zip code 17040 in Pennsylvania, is a small community with a population that has fluctuated around 2,700 residents over the past decade. This area has maintained a relatively stable homeownership rate, with a slight tendency towards owner-occupied housing. The average home prices and average rent prices have shown distinct trends over the years, reflecting broader economic conditions and local market dynamics.
The homeownership rate in zip code 17040 has remained fairly consistent, ranging between 78% and 82% from 2013 to 2022. This high rate of homeownership coincides with a steady increase in average home prices. In 2013, the average home price was $176,237, which gradually rose to $261,428 by 2022, representing a 48% increase over this period. Notably, there was a significant jump in average home prices between 2020 and 2021, from $218,271 to $243,766, a 11.7% increase in just one year.
Federal interest rates have played a role in homeownership trends. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1% to 0.4%. During this time, homeownership rates in the zip code remained stable at around 81%. As interest rates began to rise from 2017 onwards, reaching 1.68% in 2022, there was a slight fluctuation in homeownership rates, but they remained relatively high, suggesting a resilient local housing market.
The renter population in zip code 17040 has fluctuated between 18% and 22% from 2013 to 2022. Average rent prices have shown some volatility over this period. In 2013, the average rent was $828, which peaked at $864 in 2014 before gradually declining to $740 in 2022. This represents a 14.4% decrease in average rent prices over the decade. Interestingly, the lowest average rent of $740 in 2022 coincided with a slight increase in homeownership to 81%, possibly indicating a shift towards buying rather than renting.
In 2023, the average home price in zip code 17040 reached $273,899, continuing the upward trend seen in previous years. This represents a 4.8% increase from 2022. The federal interest rate in 2023 was 5.02%, significantly higher than in previous years. Moving into 2024, the average home price has further increased to $280,736, a 2.5% rise from 2023. The federal interest rate for 2024 stands at 5.33%, indicating a continued tightening of monetary policy.
Looking ahead, based on the historical data and current trends, we can predict that average home prices in zip code 17040 are likely to continue their upward trajectory over the next five years, albeit at a potentially slower pace due to higher interest rates. Average rent prices, which have shown a declining trend, may stabilize or see modest increases as the cost of homeownership rises. However, the high interest rates could potentially slow down home buying activity, which might lead to increased demand for rentals and subsequently push average rent prices upward.
In summary, zip code 17040 has demonstrated a strong preference for homeownership, with average home prices showing consistent growth despite fluctuations in the broader economy. The inverse relationship between declining average rent prices and rising homeownership rates suggests a local market that favors buying over renting. The recent sharp increases in federal interest rates and continued growth in average home prices point to a potentially changing dynamic in the local housing market, which may affect both homeownership rates and rental demand in the coming years.
